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Starting a business with little to no capital increases the risk of failure. A company needs funds for space, equipment, initial inventory and to hire employees. Underfunding is one of the primary reasons new businesses fail, according to the Small Business Administration's fact sheet, "Is Entrepreneurship For You?" Finding investors is key to making your business a success, although it can be a long process.

1.

Compose a business plan that describes your company, what it offers and why it differs from others in the marketplace. Include startup costs based on research including leases, equipment and legal fees. Also incorporate revenues and costs for two years of operations that includes important personnel and marketing costs.

2.

Compute how much you will need in startup costs based on the business plan data. Include basic startup costs as well as operational costs for two years. This may seem like you are asking for more than you need, but it shows you understand that development and growth do not happen overnight.

3.

Speak with family members about investing in the company. Family and friends comprise a major part of small business funding, according to CNN Money's "How to Find Your Angel Investor." It is easier to present to relatives, as they already have confidence in you.

4.

Recruit mentors and industry leaders to consult, partner or even manage the company. These relationships may open doors to investment from the mentors themselves or by others who respect the people you recruit.

5.

Speak with financial professionals about your company plan. Banks may have small business loan programs, but bankers, stock brokers and accountants may have other clients who actively seek small business investment.

6.

Network with the Small Business Association (SBA), your local Chamber of Commerce and at specific industry functions. Attend seminars and trade shows and distribute your business cards.

7.

Provide prospective investors with a business plan after you have explained the project and requested an investment. You will be able to judge whether the investor has a true interest in the company.

Tip

Many investors will pass on your project, not because it is not a viable business, but because they may have very specific parameters in which they invest. These parameters may include industry, required costs, stage of development or management background. Learn as much about prospective investors prior to your meetings in order to impress them. They may not invest, but their colleagues might.